FX.co ★ Turkey Inflation Continues to Cool in April

In April 2025, Turkey's annual inflation rate moderated to 37.86%, down from 38.10% recorded in March, falling short of market anticipations which projected a 38% rate. This represents the 11th consecutive month of decreasing consumer inflation and the lowest rate witnessed since December 2021. The deceleration in price growth was chiefly observed in sectors such as food and non-alcoholic beverages (36.09%, down from 37.12% in March), alcoholic beverages and tobacco (33.85% from 46.74%), furnishings, household equipment, and routine maintenance (30.54% down from 32.41%), communication (21.31% from 24.01%), recreation and culture (25.81% from 27.36%), as well as hotels, cafes, and restaurants (41.87% compared to 43.38%). Conversely, there was an uptick in costs for housing and utilities (rising to 74.07% from 68.63%), transportation (22.76% versus 21.59%), and clothing and footwear (16.92% up from 14.81%). Core inflation experienced a slight reduction to 37.12%, marking its lowest since December 2021, from a previous 37.42% in March. On a month-over-month basis, the Consumer Price Index (CPI) increased by 3% in April, following a 2.46% rise in March and narrowly missing the projected growth rate of 3.1%.